is it worth it ? how can we get around it ? Please help a newbie MFW

babybakey

SeriouslySeekingtoSave wrote: »

How much equity do you have in the house? I got a good mortgage when I was earning 30k and I had a 20% deposit. I shopped around a lot before I found it

You can find good mortgages with no fees at the moment, especially if you have decent equity in your house. But I’m not sure if whoever you are with will charge you to exit. Sounds like they will take any excuse!

the house is worth £140k id say ( thats what i reckon we'd get for it if we sold, it would have been worht £150k if the drop hadnt of happened possibly 155 ) and our mortgage ive just found out today is just over £101k so we have a good big chunk in equity.

i cant wait for my husband to get home now so we can work out figures and actually start doing all of this . i think shortening the term will be good for the ammount we can comfortably afford even if there was a interest hike. and then do a variable standing order into our isa and transfer once a year into the mortgage or what i did think was shortening the term once a year would work out cheaper wouldnt it so could just whack the extra chunk on credit with the mortgage company and shorten the term accordingly - probably not making sense now but it does in my head lol.

i think we will also start with the term shortening and see how we go for 6mths whilst saving in the isa to see if we cope ok as my maternity money has finished now and im back to work and orders are few and far between currently. so dont want to stretch ourselves and end up struggling.

thank you all so much for the help i really appriciate it and hopefully youve helped us save lots of money for the future , we had always dreamed of going to florida before the kids grew up and left home and if we work really hard we could do this before theyre even teenagers with the cash we could save on a mortgage :-)

babybakey

RosieTiger wrote: »

Some really good advice above, I would urge you to follow it and get a real understanding of the rules.
For context, the Chelt and Glouc. will charge us a fee of £10 if I want to reset my figures, but I can leave all as is on official payment and overpay as much as we like without any cost, provided i don't ask for the figures to be updated.
We don't so OPing costs nothing.

are you 100% sure its going off your balance ? as ours have said the same thing but then i asked , so is that lowering the mortgage ammount and interest and she said it wasnt and was just held on account. they were in theory sitting it next to the mortgage doing nothing not earning interest like it would be in a bank and not paying off the mortgage either. you just end up in credit.

SeriouslySeekingtoSave

Good luck BB and true RosieTiger I hope you aren't getting conned :mad: I've clicked as to what they meant by 'pay us and we'll just put it off to the side, we'll keep your money and not pay you a penny of interest on it and when we have a large enough sum of your dosh and you want to transfer it over we'll charge you an extra £83 to do so!'. What a bunch of ******'s.

babybakey

SeriouslySeekingtoSave wrote: »

Good luck BB and true RosieTiger I hope you aren't getting conned :mad: I've clicked as to what they meant by 'pay us and we'll just put it off to the side, we'll keep your money and not pay you a penny of interest on it and when we have a large enough sum of your dosh and you want to transfer it over we'll charge you an extra £83 to do so!'. What a bunch of ******'s.

Dont worry today has been a huge eye opener with regards to our mortgage company were going to shorten the term which is just £42 then see what else we can save and occasionally do lump sums or maybe save it and remortgage for less later on.

wantabetterlife

Hi bakeybakey, Thats probably the best option. I cannot believe your lender charges £83 to make an overpayment...how do they justify such charges..it is ridiculous.
Our mortgage is with the halifax and i can make overpayments for as much or as little as i want with no charge (10% yearly). They also dont charge for changing your term and give you the option of changing it back to the original term if you want to as a security net.
Goodluck with your MFW journey

babybakey

i bank with halifax and they keep asking if we want to remortgage perhaps its an option i think ill speak to my husband as it could be better for us.

thanks xx

LilacPixie

Morning BB. I wonder if you could look into making an official complaint about the company and charges?? Are all these charges outlined in your mortgage T&C?? Might not get you anywhere but for the price of a few stamps it could be worth it....